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2018-11-06 07:34:54

SBGL

Sibanye Gold

$2.69

0.135 (5.28%)

07:34

11/06/18

11/06

07:34

11/06/18

07:34

Sibanye Gold downgraded to Sell from Neutral at Citi

Citi analyst Johann Steyn downgraded Sibanye Gold to Sell and lowered his price target for the shares by 5% to R7.80. The company offered a "disappointing" Q3 update, which showed continued troubles at its gold business and below-expectations results at the U.S. platinum group metals assets, Steyn tells investors in a research note. The analyst views Sibanye's model as an "unsustainable one that will continue to rely on acquisitions to offset operational deterioration."

SBGLSibanye Gold

$2.69

0.135 (5.28%)

03/26/18

GSCO

03/26/18UPGRADEGSCOBuy

Sibanye-Stillwater upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Eugene King upgraded Sibanye-Stillwater to Buy and raised his price target for the shares to R 18 from R 16.8. The analyst also added the shares to his firm's CEEMEA Focus List. He sees an attractive entry point following the stock's recent selloff and believes balance sheet sheet concerns are overdone. King notes that Goldman's commodities team is bullish on gold for the first time in more than five years based on higher inflation, rising emerging market wealth and concerns about an equity correction. The analyst upgraded his sector view to Attractive citing his firm's bullish gold outlook.

As previously reported, Macquarie analyst Yatish Chowthee downgraded Harmony Gold (HMY) and Sibanye Gold (SBGL), both to Underperform from Neutral, citing the inflationary headwinds facing the South African gold mining sector, particularly those faced by the deep level operators. He favors companies with a geographically diverse portfolio mix and views investments in the sector as better suited to the short-to-medium term given the level of volatility exhibited with gold equities, Chowthee tells investors. However, he maintain an Outperform rating on AngloGold (AU).

Morningstar last night reported Q4 earnings per share of 99c, up from 91c a year ago, on revenue of $262.7M, up 8.1% from last year. "Morningstar reached a significant milestone in 2018, surpassing $1 billion in revenue for the first time," said Kunal Kapoor, Morningstar's CEO in the earnings statement. "This achievement resulted from putting investors first and providing exceptional experiences that support better investor outcomes. While the late 2018 downturn in global markets impacted net flows and asset growth in Morningstar Managed Portfolios, we experienced record flows into the ETFs built on Morningstar Indexes." Morningstar said market volatility negatively impacted net flows into Morningstar Managed Portfolios and impacted overall assets in Morningstar Investment Management and Workplace Solutions, particularly in Q4. Assets under management and advisement in Managed Portfolios increased by $1.2B in 2018 and were relatively flat year over year in Workplace Solutions. Morningstar.com premium subscriptions did not meet the company's expectations for growth in 2018, the company admitted. "We recently refreshed the Morningstar.com website and plan additional improvements in 2019," it noted. Shares of Morningstar are down 2%, or $2.62, to $124.60 in early trading.

Terex (TEX) delaying its earnings release led to considerable speculation on possible acquisitions, Baird analyst Mircea Dobre told investors earlier in research note. The analyst believes Astec Industries' (ASTE) "unique circumstances" and "apparent strategic fit" within the Terex portfolio "are worth contemplating." Astec would add asphalt plants, with leading market share in North America, as well a mobile pavers to Terex's Materials Processing segment, Dobre points out. Further, the addition of Astec could give Terex room to potentially altogether divest Crane down the line, with the proceeds used to reduce the leverage resulted from the acquisition, the analyst adds. Regarding the "unique circumstances," Dobre notes Astec's s CEO Ben Brock resigned on January 22, its shareholders have been pushing for improved performance, and that the activist investor on Terex's board was an Astec shareholder. Should Terex pay a multiple for Astec in-line with historical median transaction valuations in the space, it would imply a 27% premium to Astec's current price or $50 per share, according to Dobre. Shares of Astec are up 44c to $39.89 in early trading while Terex is down 3c to $35.54.